Hey Compliance Warriors!
OSHA has issued the maximum penalty amounts for 2022. Read on!
MEMORANDUM FOR: REGIONAL ADMINISTRATORS
SUBJECT: 2022 Annual Adjustments to OSHA Civil Penalties
Purpose.
The penalty information included in this memorandum is intended to supplement the penalties and debt collection information found in Chapter 6 of the Field Operations Manual (FOM). Tables included in this memorandum reflect penalty amounts for calendar year 2022 and correspond to adjusted penalty amounts found in OSHA Information Systems (OIS). OSHA updates this information annually to ensure access to current penalty information.
Background.
On November 2, 2015, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 was enacted, which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 as previously amended by the 1996 Debt Collection Improvement Act (collectively, the “Prior Inflation Adjustment Act”), to improve the effectiveness of civil monetary penalties and maintain their deterrent effect. The Inflation Adjustment Act required agencies to: (1) adjust the level of civil monetary penalties with an initial “catch-up” adjustment through an interim final rule and (2) make subsequent annual adjustments for inflation, no later than January 15 of each year.
The cost-of-living adjustment multiplier for 2022, based on the Consumer Price Index for All Urban Consumers for October 2021 (not seasonally adjusted), is 1.06222. To compute the 2022 annual adjustment, the Department multiplied the most recent penalty amount for each applicable penalty by the multiplier, 1.06222, and rounded to the nearest dollar. The adjustment factor of 1.06222 is consistent across the minimum and maximum penalties set forth in the Occupational Safety and Health Act and the FOM.
Minimum and Maximum Penalty Amounts.
Table 1 summarizes the minimum and maximum amounts for proposed civil penalties:
Table 1: Maximum and Minimum Amounts for Civil Penalties
Table 1: Maximum and Minimum Amounts for Civil Penalties
Type of Violation
Penalty Minimum
Penalty Maximum
Serious
$1,036 per violation
$14,502 per violation
Other-Than-Serious
$0 per violation
$14,502 per violation
Willful or Repeated
$10,360* per violation
$145,027 per violation
Posting Requirements
$0 per violation
$14,502 per violation
Failure to Abate
N/A
$14,502 per day unabated beyond the abatement date [generally limited to 30 days maximum]
* For a repeated other-than-serious violation that otherwise would have no initial penalty, a GBP penalty of $414 shall be proposed for the first repeated violation, $1,036 for the second repeated violation, and $2,072 for a third repetition.
Gravity Based Penalty Amounts.
The gravity of a violation is defined by the Gravity Based Penalty (GBP).
A high gravity violation is one with a GBP of $14,502.
A moderate gravity violation is one with the GBP ranging from $8,287 to $12,431.
A low gravity violation is one with a GBP of $6,215.
For serious violations, the GBP shall be assigned on the basis of the following scale in Table 2:
Severity + Probability = GBP
Table 2: Serious Violations
Table 2: Serious Violations
Severity
Probability
GBP
Gravity
OIS Code
High
Greater
$14,502
High
10
Medium
Greater
$12,431
Moderate
5
Low
Greater
$10,360
Moderate
5
High
Lesser
$10,360
Moderate
5
Medium
Lesser
$8,287
Moderate
5
Low
Lesser
$6,215
Low
1
For other-than-serious violations, only minimal severity is assigned. If the Area Director determines that it is appropriate to achieve the necessary deterrent effect, a maximum penalty of $14,502 can be proposed.
Serious Willful Penalty Reductions.
The reduction factor for history shall be applied as usual. The reduction factors for size for serious willful violations shall be applied as shown in Table 3:
Table 3: Serious Willful Penalty Reductions
Table 3: Serious Willful Penalty Reductions
Employees
Percent reduction
10 or fewer
80
11-20
60
21-30
50
31-40
40
41-50
30
51-100
20
101-250
10
251 or more
0
If you have any questions regarding the above, please contact Andrew Reed in the Directorate of Enforcement Programs at (202) 693-1850.
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